This profit margin calculator will help you find the right selling price for your goods and services by giving you transparency over the profit margins, cost ratio and profit ratios. If you are looking at achieving a specific profit margin you can adjust either the buying price or the selling price to achieve the balance. Whilst increasing the price that you sell the product or service for will usually increase the profit margin, decreasing the price that is paid for it usually has a bigger effect on margin percentages. This is because the calculations are based on change from the base price to the sale price. An example of this is a product that costs $100 to buy that you sell for $200 which has a profit margin of 100%. If you sell it for $20 more the profit ratio changes to 120%. However, if you decrease the buying price to $80 and sell it for $200 the profit margin goes up to 150%.

If you are looking for help with your taxation needs we recommend the team at Glenfield Tax Accountants who are Accountants that see beyond the balance sheet. They're available at their website at https://www.taxshop.co.nz/ or by calling 09-443 7741.